FTC issues proposed rule banning noncompete clauses

A Federal Trade Commission proposed rule would prohibit most employers from requiring employees to sign noncompete clauses, which the agency said could lead to almost $300 billion annually in increased wages and expanded career opportunities for some 30 million Americans, ADA News reported. "Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand," said FTC Chair Lina M. Khan. The FTC said employers generally would not be able to use noncompetes and most also would be required to rescind existing clauses and inform workers they no longer are in effect. The ADA offers A Dentist's Guide to the Law, which discusses current law on noncompete clauses, also called restrictive covenants, for purchase at the ADA Store.

Full Story: ADA News (1/13)